Budget 101/Workshop Introduction:How the Clinton Township School BudgetWill Be Put Together

A presentation by Dr. Drucilla Clark, SuperintendentHeather Spitzer, Business AdministratorClinton Township School DistrictFebruary 24, 2014

Just a reminder that…Clinton Township School District is PK-8 ONLY

Round Valley4-6

536 StudentsBuilt 1965

Patrick McGaheran

2-3288 Students

Built 1988

Spruce Run PK-1

295 StudentsBuilt 1955

4 Schools – 1,544 Students (10-15-13)

Clinton TownshipMiddle School

7-8425 Students

Built 2007

Budget Calendar

• January/February - Budget 101 and CSA & BA evaluate Principal/Department budget requests

• February – BOE assembles preliminary budget• February – Budget Workshops begin; DOE

releases State Aid figures • March/April - BOE adopts preliminary Budget,

Budget sent to County for approval, Public Hearing

• May– Meeting with Town Council & Mayor

What is a School Budget?

CTSD’s Fiscal Year (July 1st - June 30th)It’s Developed December - March of the preceding year

Needs &Priorities

How do we build your PK-8 Budget to begin the Zero-Based Budget Process?

Step 1 - Review Required Spending+ Contracted Salaries, (Negotiated, then fixed for 3 years)+ Contracted Health Benefits (Negotiated, then the benefits are

fixed for 3 years, however the costs are not.)+ Mandated Special Education Spending+ Mandated Professional Services: Lawyer, Auditor, Architect+ Essential Building Maintenance: Custodial supplies & repairs+ Transportation+ Mandated Insurances+ Fixed Equipment Costs + State Mandated Testing Services

TOTAL REQUIRED SPENDING

How do we build your PK-8 Zero-Based Budget?Step 2 – Identify Variable Costs

+ Trends analysis to estimate any increases in current costs(done by Business Administrator)

+ Superintendent, Principals & District Administration review:

+ Curriculum needs+ State mandates+ Textbook review cycle+ Professional development + Building equipment+ Classroom supplies+ Technology needs

TOTAL VARIABLE COSTS

Required Spending made up88.78% of total budget in 2013-14

88.78%$23,636,366

Fixed Costs andState Mandated

Spending

11.22%$2,985,771

Variable Costs

Total 13-14 CTSD Budget

Leaving 11.22 % variable costsfor things like…

• Textbooks• Teacher Training/Professional Development

(actually becoming a mandated cost-there are 19 current mandated regulations and at least 32 policies that require training or some type of additional cost to school districts)

• General supplies for departments• Unexpected State mandates

throughout the year (PARCC & Security)

• Or other possible improvements to programs, instruction or facilities…….aligning the curriculum to the Common Core Standards, snow and storm damage repairs

How do we build your PK-8 Zero-Based Budget?Step 3 - Estimate Aid & Income(Revenue, other than Local Taxes)

+ State Aid: Given by Department of Ed, figures expected end of February (with NJ’s budget deficit, State Aid will probably decrease or remain the same)

+ Surplus: Calculated during prior year audit+ Federal Aid: Calculated on trend analysis and projections+ Tuition: Based on current/expected contracts and trend analysis+ Other: Calculated on trend analysis and contractual commitments

(includes investment income, building usage and shared services agreements)

TOTAL REVENUE NOT FROM TAXES

How do we build your PK-8 Zero-Based Budget?Step 4 - Calculate Tax Levy

LOCAL TAXES NEEDED TOSUPPORT BUDGET

(TOTAL REVENUE NOT FROM TAXES)

TOTAL REQUIRED SPENDINGTOTAL VARIABLE COSTS+

-

Step 4 - ContinuedCalculation of Your PK-8 Tax Levy

Budget Cap:Legally, the local tax increasecannot exceed 2% per year

without a cap over-ride referendum voted on by the taxpayers

There is no vote on the annual school based budget within the 2% levy cap.

If the proposed budget increase is 2% or less, and all of the approvals are

complete, then this is the final budget.

Where does your Clinton Township PK-8school budget revenue come from?

Local Taxes84.63%

State Aid11.03%

Surplus0.88%

Federal Aid1.34%

Tuition 1.56%

Other0.56%

Total 13-14 Budget

$22,530,498

$2,935,874

$358,062

$234,663

$147,740

$415,300

Where does the PK-8 money go?

Salaries Benefits ProfessionalServices

Out of DistrictTuition

Utilities Repairs &Maintenance

Transportation & Equipment Supplies

PK-8Schools

47%

NH-VRHS26%

Municipal11%

County13%

CountyOpen Space

1%

Library1%

Clinton Twp. Open Space

1%

How are Clinton Township Property Taxes Distributed?

SOURCE 2013 TOWNSHIP OF CLINTON TAX COLLECTOR

Tax Trends in Clinton TownshipTotal Tax Levy in Clinton Township has increase .68% over the last 5 years,

District School Tax has increased only 1.99%

– Source: Clinton Township Tax Administrator 2013 Tax Rate Detail

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

0.68%1.99%

-0.37%

11.95%

-9.50%

Series1

Assessed values have decreased $464,476,143 or 17.81%

Good News!

• Continuing A Coherent Vision for Curriculum & Programs• PARCC opportunities as a selected field test site• Source 4 Teachers-Opportunity to support instruction with a

larger availability of qualified professionals and to manage the risk associated with implementing the Affordable Care Act

• Ratables trending down, School tax rate remains at a slight increase over last five years

• Solid Audit Report• Fiscally responsible long term planning

– Successful increases to the capital & maintenance reserve accounts– Marketing our prescription plan resulting in savings for both district

and staff – ROD grants

Next Meeting DatesClinton Township Middle School Auditorium

• March 10, 2014 7:30 Budget Workshop

• March 17, 2014 7:30 Preliminary Budget Meeting and Vote

• March 24, 2014 7:30 Regular BOE Meeting

• April 28, 2014 7:30 Budget Public Hearing

We want to hear from you!

Thank you for reviewing this presentation with us! If you should have any questions, please do not hesitate to let us know.

We are sharpening our pencils and working on the

next steps. Please submit any questions to the Superintendent at dclark@ctsd.k12.nj.us so we can begin responding at the next board meeting.